vi. Compliance, Risk & Controls

Compliance, risk, and controls ensure that real estate operations adhere to legal, regulatory, and internal standards. These mechanisms reduce operational risk, support accountability, and provide assurance to owners, lenders, and other stakeholders.

Audit Trail

A documented record of actions, transactions, and changes that enables review, verification, and accountability.

Compliance Requirement

A legal, regulatory, or contractual obligation that a property or operator must satisfy.

Control Environment

The policies, procedures, and governance structures that guide how operations are managed and monitored.

Internal Control

Processes designed to prevent errors, fraud, or noncompliance in operational and financial activities.

Operational Risk

The risk of loss resulting from inadequate processes, systems, human error, or external events.

Policy Enforcement

The mechanisms used to ensure operating rules and standards are consistently applied.

Regulatory Filing

Required submissions or disclosures made to authorities to demonstrate compliance.

Risk Assessment

The process of identifying, evaluating, and prioritizing operational risks.

Segregation of Duties

The practice of separating responsibilities to reduce the risk of error or misconduct.

Third-Party Risk

Risks arising from reliance on vendors, contractors, or service providers.